Commercial real estate prices are projected to rise by an average of 4 percent annually, according to a new three-year economic forecast from the Urban Land Institute’s Center for Capital Markets and Real Estate. Through 2019, national vacancy or availability rates are forecast to rise modestly for all property types except industrial, which will stay flat.
The forecast, which gauges sentiment among economists and real estate analysts, also predicts real estate transaction volumes will fall to $450 billion in 2017, $427 billion in 2018 and $414 billion in 2019. Industrial rent growth will lead all property types, averaging 3.7 percent, followed by hotels at 2.7 percent growth in revenue per available room.
